US-based United Natural Foods (UNFI) has bought all the outstanding stock of Nor-Cal Produce and an affiliated unit along with some real estate for $68.6m.
Nor-Cal, a family-owned company established in 1972, is a wholesaler of organic and other fresh products in Northern California.
Nor-Cal Produce president Todd Achondo said: "The entire Nor-Cal team is excited to be a part of UNFI.
"We look forward to working together to grow the combined company and better serve our customers nationwide."
The takeover will help United Natural Foods, which is an organic, natural and specialty food distributor, to expand its existing produce operations.
United Natural Foods president and chief executive officer Steven Spinner said: "We are excited to expand the breadth of our fresh perimeter product assortment and distribution network with the acquisition of Nor-Cal.
"This acquisition further illustrates UNFI's growth into fresh and we look forward to working with Todd Achondo, President of Nor-Cal, who will remain at the company in a leadership role, and their entire team."
The transaction has been financed by UNFI partially through available cash and partially through borrowings under its revolving credit facility.
In December 2015, United Natural Foods announced plans to start a new distribution centre in Gilroy, California in mid-January this year.
The new centre was expected to create approximately 200 new jobs in the region.
United Natural Foods distributes more than 85,000 products to over 40,000 locations across the US and Canada.
